Our Bureau
Mumbai
Apple’s contract manufacturers in India have crossed a significant threshold, achieving over 20% domestic value addition (DVA) across iPhone models, marking a major leap in the country’s electronics manufacturing capabilities and reinforcing its status as a key hub in Apple’s global supply chain. This milestone comes as iPhone exports from India surged by 76% year-on-year in FY25, reaching a record ₹1.5 lakh crore (about $18 billion) in free on board (FOB) value.
Leading the charge in this expansion are major contract manufacturers such as Foxconn, Tata Electronics, Dixon, Pegatron, and Wistron (now acquired by Tata), all of whom have surpassed the 20% DVA requirement for various iPhone variants. The increase in local value addition is driven by greater use of domestically sourced components—including mechanical parts, enclosures, batteries, chargers, and packaging—as well as local assembly and testing services. This progress aligns with the Indian government’s “Make in India” initiative and the Production Linked Incentive (PLI) scheme, both aimed at boosting local manufacturing and exports.
Foxconn, Apple’s largest manufacturing partner in India, has been particularly instrumental, exporting iPhones worth $3.2 billion from India, with an impressive 97% of these devices shipped to the United States—a sharp rise from the 50.3% average in 2024. Tata Electronics has also emerged as Apple’s fastest-growing supplier, shipping 7.5 million iPhones in the first five months of 2025, accounting for 37% of India’s iPhone exports and up from just 13% the previous year. This rapid growth is attributed to Tata’s swift integration of Wistron’s assembly facility and aggressive expansion of its electronics manufacturing footprint.
Apple’s deepening integration with Indian suppliers is not limited to manufacturing. The company is also collaborating with the Murugappa Group and Titan to locally source camera modules and has partnered with Tata Group to manage after-sales repairs for iPhones and MacBooks in India. These moves reflect Apple’s strategy to reduce dependence on China amid rising geopolitical and tariff risks, while also strengthening India’s position as a production and service hub.
As a result, India is fast emerging as a critical node in Apple’s global ecosystem, with analysts projecting that the country could account for at least 18% of Apple’s global iPhone production by FY25. With ongoing investments and policy support, India’s electronics manufacturing sector is poised for continued growth, further boosting exports and creating a robust vendor ecosystem.
